Globe Telecom has signed a seven-year, P5-Billion floating-rate term loan facility with BDO Unibank, Inc. to fund capital expenditures for 2012 and refinance existing debts.
“We intend to use the BDO facility to fund our capital expenditure requirements for next year, including the initial portion of our mobile network modernization program, which aims to significantly improve network quality and customer experience, increase voice and data capacity, drive down costs, and prepare the network to meet the future needs of our customers,” said Alberto M. de Larrazabal, Chief Financial Officer of Globe.
The BDO loan is the third loan facility to be availed by Globe this year. International credit rating firm Fitch Ratings recently upgraded the company’s long-term foreign and local currency issuer default ratings (IDRs) to BBB- from BB+ with a stable outlook. As of end-September 2011, Globe had a debt-to-equity ratio of 1.04.